John Is Trying to Initialize the Seasonality Indexes for an Exponential

Multiple Choice

John is trying to initialize the seasonality indexes for an exponential smoothing model with seasonality using the following demand data.Among his many decisions, one was to set the seasonality index for the ______ quarter to ______.Fill in the blanks correctly.
$$\begin{array} { c c c c c } \text { Quarter } & 1 & 2 & 3 & 4 \\\hline \text { Demand } & 40 & 250 & 190 & 110\end{array}$$

A) 1st/0.545
B) 2nd/2.124
C) 4th/0.7457
D) 3rd/1.988